Contact offers 8% for non-guaranteed retail bonds

Contact offers 8% for non-guaranteed retail bonds
Contact Energy today announced an 8% interest rate for its NZ$300 million retail bond offer with the ability to accept unlimited over-subscriptions. The offer of unsecured, unsubordinated bonds will close on March 31. The five year bonds have been given a credit rating of BBB by Standard and Poor's. Contact Chief Executive David Baldwin said capital raised in the bond offer would be used for Contact's capital investment programme, including investment in geothermal development near Taupo, new gas-fired peaking capacity at Stratford, as well as the country's first underground natural gas storage facility near Stratford and for general operational purposes. The funds may also be used to repay existing debt, Baldwin said. The offer is being lead managed by First NZ Capital Securities, ABN Amro New Zealand, ANZ and Forsyth Barr, and co-managed by Westpac Institutional Bank. For a list of corporate retail bond offers in New Zealand see our bond rush page here.

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.